NEW YORK--(BUSINESS WIRE)--Ladder Capital Corp (together with its subsidiaries “Ladder” or the “Company”) (NYSE: LADR) announced credit ratings upgrades by Moody’s Investors Service (“Moody’s”) and Fitch Ratings (“Fitch”) following the closing of $750 million of 4.250% senior unsecured notes by Ladder’s subsidiaries (the “New Issue”) earlier today. Ladder now has a corporate family rating of Ba1 from Moody’s and a rating of BB+ from Fitch.
Moody’s upgraded the long-term corporate family rating of the Company to Ba1 from Ba2 (Outlook: Stable) and the long-term senior unsecured rating of the debt issuing subsidiary to Ba2 from Ba3 (Outlook: Stable). Moody’s also assigned a Ba2 rating (Outlook: Stable) to the New Issue. According to Moody’s, the credit ratings upgrade is due to Ladder’s improved funding profile as a result of the New Issue and, “Ladder’s ratings and stable outlook are supported by the Company’s strong and consistent financial performance, including moderate leverage, high-quality assets, a history of profitability since inception, and increasing funding diversification.”
Fitch’s upgrade reflects improvement in Ladder’s funding flexibility with the completion of the New Issue and that Ladder’s ratings remain supported by factors that include Ladder’s established platform, strong credit track record, consistent investment strategy, conservative underwriting culture and internal management structure with a strong alignment of interest between management and shareholders.
Pamela McCormack, Ladder’s President, commented, “We are pleased with our credit ratings upgrades and appreciate the recognition of Ladder’s disciplined focus on credit and on strengthening and lengthening our liability structure.”
Brian Harris, Ladder’s Chief Executive Officer, further noted, “We take a long-term view of liability management. Ladder’s consistent focus on the right side of our balance sheet is a core business principle.”
Ladder’s funding profile continues to improve. As announced earlier in the month, the Company recently extended the maturity dates of five of its loan repurchase facilities, totaling $1.4 billion of committed funding capacity, its $400 million committed securities repurchase facility, and its $266 million revolving credit facility. These upgrades will also reduce the drawn costs on the revolving credit facility.
Ladder Capital Corp (NYSE: LADR) is an internally-managed commercial real estate investment trust with over $6 billion of assets. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns. As one of the nation’s leading commercial real estate capital providers, we specialize in underwriting commercial real estate and offering flexible capital solutions within a sophisticated platform.
Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Our investment activities include: (i) our primary business of originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate with flexible loan structures; (ii) investing in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) owning and operating commercial real estate, including net leased commercial properties.
Founded in 2008, Ladder is run by a highly experienced management team with extensive expertise in all aspects of the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management. Members of Ladder’s management and board of directors are highly aligned with the Company’s investors, owning 11.3% of the Company’s equity (approximately $245 million as of December 31, 2019). Led by Brian Harris, the Company’s Chief Executive Officer, Ladder is headquartered in New York City with regional offices in California and Florida.
Certain statements in this release constitute “forward-looking” statements. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Ladder believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as well as its consolidated financial statements, related notes, and other financial information appearing therein, and its other filings with the U.S. Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Ladder expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or changes in events, conditions, or circumstances on which any such statement is based.